A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2009 · Q91 Mark

A new business was established with opening capital of $15 000. At the end of the year net assets were $20 000. During the year the proprietor's drawings were $3000 and this resulted in an overdraft at the end of the year of $4000. What was the profit during the year?

A$2000

B$4000

C$5000

D$8000

✓ Correct answer

D: $8000

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2009 Paper 1 Variant 2, question 9.

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